Tesla unlikely to further decrease price of China-made vehicles
Monika From Gasgoo
| December 30 , 2020
Shanghai (Gasgoo)- As Tesla has basically achieved its target of auto parts localization in China, it is unlikely to see further reduction in the prices of made-in-China Tesla cars in the future, according to a local media outlet, quoting Tao Lin, Vice President of Tesla China Foreign Affairs.
Ms Tao revealed there is still the probability that the car price will rise if the prices of raw materials and auto parts go higher.
However, some insiders said the room for potential price falls still exists. With the cost of making a China-made Model 3 EV working out to roughly 200,000 yuan ($30,650), the gross margin for the locally-produced Model 3s is estimated to be around 30%, which is much higher than that of its U.S.-made counterpart, said the report.